Good morning, HTM family!

Want an extraordinary life?…

– Build extraordinary confidence
– Think extraordinary thoughts
– Ask extraordinary questions
– Share extraordinary positivity
– Try extraordinary things

– BE extraordinary

When you dare to break free from being “normal”, your whole world changes. Try it!

OK, let’s chat about money stuff! 👇👇👇

TO DO

Review your account beneficiaries! 🪦

Why did the scarecrow update his account beneficiaries? 🌾

Because he wanted to make sure his assets were properly “reaped” after he was gone!

Get it!?

Ah, sorry for the lame joke… Just trying to lighten the mood on a morbid topic ☠️🪦. We all die at some point. And if it happens unexpectedly, you don’t want to leave a money mess for your loved ones!

This week: Take 10 minutes and make sure all the names/percentages are still current for your named account beneficiaries. Do this for all:

✅ Bank accounts
✅ Retirement accounts
✅ Insurance policies

Listing beneficiaries means they can access funds quicker if you pass away, and possibly avoid the loooong and expensive probate process!!

LIFESTYLE

Rules to “Guarantee a Life of Misery” 😭

Charlie Munger was one of the world’s most successful investors. He was also a witty and funny fellow, frequently fomenting wise anecdotes about life.

In 1986, he gave a famous commencement speech at Harvard-Westlake School, urging the graduates to avoid common pitfalls that lead to misery in life…

Here is the summary of Munger’s rules to guarantee a life of misery:

1. Rely on chemicals to manage your mood

2. Engage in envy

3. Engage in resentment

4. Be unreliable

5. Avoid vicarious learning

6. Give up when faced with adversity

7. Minimize objectivity and ignore disproving evidence

Not to be presumptuous, but we’d add one to Mr. Munger’s list:

“8. Never increase your financial IQ” —> That will keep you miserable (and broke) forever. We’re not saying money makes you happy in life, but if you don’t learn how money works, you’ll never accumulate enough to fund your dreams and achieve financial freedom!

Hmmm… 🤔 Reading through this list brings up a few tweaks I should probably make in my life. What about you?

Related stuff:

• 📈 Morningstar: How NOT to Invest, based on Charlie’s advice

• 📚 Book Rec: Poor Charlie’s Almanack, by Charles Munger (Rent it from the library! - $0)

TOGETHER WITH LIVELY*

Lively: Your Partner for Health Savings

Lively is a fin-tech platform that specializes in Health Savings Accounts (HSAs). Their online platform makes it easy for folks to make contributions, track expenses, and manage investments.

Best of all, it’s FREE for individuals!

If your employer doesn’t offer an HSA partner, or if you’re paying junk account fees to an old provider, check out Lively. They’ll help you be more in control of your healthcare finances 💪

INVESTING

Election Years — Stay the Course! 🗳️

With 2024 being an election year, you might wonder how the stock market is going to react. To figure that out, it’s helpful to zoom out and look at history!

This is what the S&P 500 has done over the last ~90 years 👇👇👇

A few reminders for y’all:

• Think long term: It doesn't matter which party holds office, over the long run the stock market goes up! 👆

• Always be buying: Market volatility is normal, but the highs and lows don’t matter when you dollar cost average (keep investing the same amount on a regular schedule) 💸

• Don’t sell: Trying to "time the market" is the opposite of a "buy and hold" strategy. Don't waiver from buying and holding, it's a core principle of wealth building you can't turn your back on. 🙅‍♀️

• Tune out the media: Most “news” is created specifically to evoke strong emotions, which can encourage bad choices. Don’t fall for it!

TLDR: don't let politics influence your investing strategy. You’re on a mission to build wealth and achieve financial freedom — stay focused on that!

Related stuff:

• 🧑‍💻 HTM Blog: Tips for Investing in a Volatile Market

• 📈 Stats: S&P 500 Past Performance During Election Years

ICYMI

In other news…

Red Lobster 🦞
No more “endless shrimp”... Red Lobster has filed for Chapter 11 bankruptcy protection and is looking for a buyer for their 500+ locations across the US. If you have any old Red Lobster gift cards, NOW is the time to use them!

Renovation ROI 🏡
Here are the top home renovation projects with the highest ROI. (Spoiler alert: Most home upgrades have a negative ROI, costing more than the value they add). Update your home because you have the cash and want to, not because you think it will wildly inflate the value.

Exercise FTW 💪
After 20.9 million observations from 199 unique cohort studies, new research concludes that an increased cardio fitness level will reduce your risk of death from any cause by 11-17%! Start working out, peeps!!!!

Sun Belt 🏠
Redfin released new stats for declining rent prices across the US — 9 out of the top 10 steepest rent declines are in sunbelt states.

Just for Fun 🤷‍♂️
Can you spot bad financial advice on TikTok? Take this 8-question Washington Post quiz (it’s actually pretty easy 😉)

ASK HTM

“How much should I pay for a used car?” 🤷‍♀️

There’s no one-size-fits-all answer to this question.

But as a general rule of thumb, we are huge fans of the 10% rule — keeping ALL of your automotive expenses under 10% of your annual income.

So from a monthly perspective, it looks like this…

If you are buying a car upfront in cash, take the monthly figure based on your income (minus gas/reg/insurance), and multiply it by the number of years you will drive the car. This should give you a reasonable car upgrade budget while still adhering to the 10% rule!

That’s the short answer. Here’s the longer one.

Welp, that’s it for now! Wishing you an extraordinary week ahead, being your awesome self 🤩

Best friends out! 🍻